Car Insurance and its types: A Useful Guide

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Car Insurance

Car insurance is basically a contract between the insurance company and its customer which covers the financial as well as personal loss in case of any sudden incident providing different policies, packages and premium packages to its valued customers.

What is Car Insurance

There are two types of car insurance, “automobile liability insurance” and “voluntary insurance”.

As you learned when you got your license, “car Insurance” is compulsory insurance that everyone who drives a car must take out.
We are compulsory to join to ensure the minimum compensation for accident victims.

Types of Car Insurance

What is automobile liability insurance?

Legal liability is involved in automobile liability insurance covering loss against injuries or damage caused by automobile. It pays for the damages to the person who is not at fault.

car insurance types

Compensation details

Personal (compensation for people)
Injury accidents up to 1.2 million yen In case of
fatal accidents up to 30 million yen
Residual disability is limited to 40 million yen

I don’t want an accident to happen, but if the other person dies, I can only compensate for 30 million yen.
Can you be convinced by the damages of only 30 million yen?
Recently, the amount of compensation for damages often exceeds 100 million yen, so you can see that the liability insurance alone is not enough.

What is voluntary insurance?

It is a car insurance that can be purchased at the will of the driver. You can drive without any legal problems if you take out only the compulsory automobile liability insurance, but since the compulsory automobile liability insurance alone does not provide sufficient compensation in the event of an accident, the automobile society Approximately 70-80% of people also take out voluntary insurance.

car insurance 2

And voluntary insurance can cover compensation that was not enough with compulsory automobile liability insurance because you are willing to pay the amount you are comfortable to pay, by this the car insurance amount can be reduced. When you get car insurance quote, the quotation changes according to the voluntary insurance amount.

If you are prepared, there is no worry.

If you have car insurance, it does not mean that you will not have an accident.
If you are well prepared on a regular basis, you will not have to worry if something suddenly happens about it. The more you worry about money and your health, the more labour you have to worry about.
By all means, let’s reduce even one worry for just a few minutes and only tens of thousands of yen.

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